Hyundai Commercial Accelerates Future Mobility Investment... Expands Corporate Finance Division

Corporate Finance 41%... Portfolio Diversification

Hyundai Commercial announced on the 19th that it is increasing its investment scale in future mobility as part of expanding its asset portfolio. Since the beginning of this year, it has been actively investing across the entire future mobility market, including future car parts manufacturers, shared mobility platforms, hydrogen value chains, and urban air mobility (UAM).

The investment methods are diverse. It has chosen to invest in private equity fund (PEF) capital managed by asset management firms or provide funds during mergers and acquisitions (M&A) processes. It has also participated in investments through a co-general partner (Co-GP) method, where multiple asset managers jointly establish a fund. In the case of co-general partners, they also contribute to recruiting investors and enhancing the value of investee companies.

Hyundai Commercial is focusing on the future mobility market within corporate finance (IB) based on a high understanding of the mobility industry value chain. Hyundai Commercial is the only captive corporate finance specialized financial company within Hyundai Motor Group. While Hyundai Motor Group is pushing for a transition to a mobility solutions company, its affiliate Hyundai Commercial has also increased its expertise in the future mobility market by collaborating with the group.

[Image courtesy of Hyundai Commercial]

Additionally, Hyundai Commercial has concentrated on corporate finance to expand its investment asset portfolio. In 2022, it participated in a 350 billion KRW mobility fund established by a PEF management company. It has continued investments by joining project funds for automotive lightweight material parts companies and electric motor manufacturing projects. As of the end of June, the asset allocation showed that industrial finance, which provides financial products for buses, large trucks, and construction machinery, accounted for 49.7%, while corporate finance, which invests in operating and facility funds necessary for corporate management, reached 41.1%. This marks a change compared to the past when reliance on industrial finance exceeded 70%.

A Hyundai Commercial official stated, “The future mobility market has high investment value due to its significant growth potential. Based on eco-friendly fuels and mobility platforms, there is great potential for expansion into distribution, transportation industries, as well as finance and construction sectors.” He added, “With our expertise in corporate finance and deep understanding of the automotive industry value chain, we will actively engage in the future mobility investment market.”